• 40. (1) A grant under section 45 of the Act may be made to a veteran by the purchase and delivery by the Director to him of specified chattels, conditional upon the veteran complying for a period of 10 consecutive years with the terms of his agreement for the purchase, lease, use or grant of the Dominion or provincial lands on which he settles.

• (2) The veteran shall covenant and agree that, on default of any covenant or term under such agreement, he will deliver possession of the chattels to the Director on demand, and that the title to and right of possession of the chattels shall be and remain in the Director until the veteran has complied with the covenants and terms of such agreement for a period of 10 consecutive years.

41. A grant under section 45 of the Act in an amount not exceeding $1,200 may be made to any veteran in a group consisting of not more than 10 veterans, who propose conducting joint operations in farming or forestry, for the purchase of machinery essential to farming or machinery and equipment essential to forestry.

42. A veteran established as a farmer under the provisions of the Act in a spring wheat area, as defined in the Prairie Farm Assistance Act, and whose farming operations are predominantly directed to the production of spring wheat, may continue under a crop share agreement, entered into on or before June 12, 1962.

• 43. (1) In this section,

  “specified acres”

  “specified acres” means, in respect of a collateral agreement, the number of acres specified in the collateral agreement; (acres spécifiées)

  “specified grain”

  “specified grain” means wheat, oats, barley, flax, rye and rapeseed. (grain spécifié)

• (2) A veteran established or to be established as a farmer under the provisions of the Act in a spring wheat area as defined in the Prairie Farm Assistance Act and whose principal crops grown are specified grains may, in addition to continuing under or entering into a principal agreement or agreements under the Act, enter into a crop share agreement, hereinafter called a collateral agreement, as collateral to the principal agreements.

• (3) A collateral agreement described in subsection (2) may provide, among other things, that

  • (a) the veteran will, in each year during the term of the agreement, seed to a specified grain or combination of specified grains the number of acres specified in the collateral agreement, unless the Director approves the seeding, in any year, of a lesser number of acres;

  • (b) where the Director approves the seeding in any year of a lesser number of acres than the specified acres, the veteran will, in the next following year, seed to a specified grain or a combination of specified grains in addition to the specified acres, the number of acres by which the specified acres was reduced in the preceding year, and the aggregate of the specified acres and the additional acres shall be deemed to be the specified acres for that year;

  • (c) the veteran will deliver to the order of the Director in each year during the term of the collateral agreement, when harvested, one-half of the yield of each specified grain seeded on the specified acres that is in excess of the minimum yield for that grain but not in excess of the maximum yield for that grain;

  • (d) the veteran may deliver to the order of the Director additional grain from the specified and additional acres;

  • (e) where, in accordance with the terms of the collateral agreement, no grain is delivered to the order of the Director in any year,

    • (i) payment of the amortized amounts due in that year under the principal agreements shall be postponed to the termination date of the last expiring principal agreement, and

    • (ii) interest on such amortized amounts shall accrue only on the principal portion thereof;

  • (f) where the proceeds from the grain delivered to the order of the Director in any year are less than the aggregate of the amortized amounts due in that year under the principal agreements,

    • (i) payment of the amount of the deficiency shall be postponed to the terminating date of the last expiring principal agreement, and

    • (ii) interest on the amount of the deficiency shall accrue only on the principal portion thereof;

  • (g) where the proceeds from grain delivered to the order of the Director in any year exceed the aggregate of the amortized amounts and other amounts due in that year under the principal agreements, the excess amount shall be applied in reduction of the outstanding debt to the Director;

  • (h) for the purposes of the collateral agreement, the determination of the yields of specified grains shall be

    • (i) in those townships or partial townships that qualify for an award under the Prairie Farm Assistance Act, the yields by farm units as established under that Act, and

    • (ii) in those townships or partial townships that do not qualify for an award under that Act, as established by evidence satisfactory to the Director;

  • (i) where the Director is of opinion that the veteran has not delivered grain as agreed, is avoiding delivery or otherwise acting in bad faith in respect of the collateral agreement, the Director may cancel the collateral agreement; and

  • (j) where a collateral agreement is cancelled by the Director, the terms and conditions of the principal agreements shall have effect as if

    • (i) the collateral agreement had not been entered into, and

    • (ii) every delivery made under the collateral agreement had been a payment made under the principal agreements for the amount of the proceeds of the delivery.

• (4) Where a veteran has entered into a crop share agreement referred to in section 42, he may

  • (a) continue under that agreement; or

  • (b) elect to cancel that agreement and enter into a collateral agreement under subsection (2).

• (5) For the purpose of paragraph (3)(c),

  • (a) the minimum yield in bushels per seeded acre for the specified grain set out in Column I of the table to this section is the number set out in Column II opposite that grain; and

  • (b) the maximum yield in bushels per seeded acre for the specified grain set out in Column I of the table to this section is the number set out in Column III opposite that grain.

    Column I	Column II	Column III
    Specified Grain	Minimum yield in bushels per seeded acre	Maximum yield in bushels per seeded acre
    1. Wheat	6	18
    2. Oats	12	36
    3. Barley	8	24
    4. Flax	3	9
    5. Rye	4½	13½
    6. Rapeseed	4½	13½